#### Home >> (Table of Contents) Studies and Indicators >> Technical Studies Reference >> Standard Error Bands

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### Standard Error Bands

This study calculates and displays Standard Error bands for the data specified by the **Input Data** Input. This study is similar in appearance to Bollinger Bands, however they are calculated and interpreted differently. Where Bollinger Bands are plotted at Standard Deviation levels above and below a Moving Average, Standard Error Bands are plotted at Standard Error levels above and below a Linear Regression Indicator.

Let \(X\) be a random variable denoting the **Input Data**, and let \(X_t\) be the value of the **Input Data** at Index \(t\). Let the Inputes **Length** and **Standard Deviations** be denoted as \(n\) and \(v\), respectively. The Standard Error for the given Inputs at Index \(t\) is denoted as \(SE_t(X,n)\), and we calculate it for \(t \geq n - 1\) as follows.

There are three Standard Error Bands. The middle band is just the Linear Regression Indicator \(LRI_t(X,n)\). The Top and Bottom Bands for the given Inputs at Index \(t\) are denoted as \(TB^{(SE)}_t(X,n)\) and \(BB^{(SE)}_t(X,n)\), respectively, and we compute them for \(t \geq n - 1\) as follows.

\(TB^{(SE)}_t(X,n) = LRI(X,n) + v\cdot SE_t(X,n)\)\(BB^{(SE)}_t(X,n) = LRI(X,n) - v\cdot SE_t(X,n)\)

#### Inputs

#### Spreadsheet

The spreadsheet below contains the formulas for this study in Spreadsheet format. Save this Spreadsheet to the Data Files Folder.

Open it through **File >> Open Spreadsheet**.

*Last modified Friday, 08th March, 2019.